Edison Insurance AM Best Rating – What You Need to Know

When shopping for home insurance in Florida, you’ll likely come across Edison Insurance Company. As a niche insurer focused solely on homeowners coverage in the Sunshine State, Edison offers discounted rates that can seem appealing. However, is Edison Insurance a financially stable choice that will be there when you need them?

One key factor many insurance shoppers look at is an insurer’s rating from AM Best. This independent agency evaluates the financial strength of insurance companies grading them on an A++ to F scale. So where does Edison Insurance land when it comes to the trusted AM Best ratings?

In this comprehensive guide we’ll cover

• An Overview of Edison Insurance
• What AM Best Ratings Mean and Why They Matter
• Reasons Why Edison Insurance is Not Rated
• Alternative Ways to Gauge Edison’s Financial Strength
• Policyholder Complaints and Reviews to Watch For
• How to Evaluate Carriers Without AM Best Ratings
• Key Factors Beyond AM Best When Selecting Insurance
• Is Edison Insurance a Good Choice for Coverage?

Overview of Edison Insurance

First let’s look at some background on Edison Insurance

• Founded in 2005 in Florida
• Focuses solely on homeowners insurance
• Only offers coverage in Florida
• Not rated by AM Best
• A+ (Superior) rating from Better Business Bureau (BBB)

As a relatively young and niche insurer operating in a single state, Edison does not yet have sufficient financial data for AM Best to formally rate them. However, the lack of an AM Best rating does not necessarily indicate issues with financial stability.

The Significance of AM Best Ratings

AM Best is a leading credit rating agency focused exclusively on the insurance industry. Their Financial Strength Ratings assess insurers’ ability to pay out future claims.

Here are some key facts on AM Best ratings:

• Rated based on quantitative and qualitative factors
• Ratings range from A++ (Superior) to D (Poor)
• Considers balance sheet strength, operating performance, business profile and other measures
• Trusted indicator of an insurer’s financial stability

Most large national carriers have AM Best Ratings of A or higher. So the ratings provide an objective third-party evaluation.

Why Edison Insurance is Not Rated

There are several likely reasons why Edison Insurance is not rated by AM Best currently:

• Too new and limited 12+ year operating history
• Niche market focus on one state
• Relatively low premium volume compared to nationwide companies
• AM Best needs sufficient data to analyze, which emerging regional carriers may lack

Additionally, the AM Best rating process is voluntary. Some insurers opt not to participate or have yet to be graded.

So the lack of a published rating for Edison Insurance is more a reflection of their size and operating strategy rather than an indicator of financial issues.

Alternative Ways to Gauge Edison’s Financial Strength

While not rated by AM Best, we can look at other signs regarding Edison Insurance’s financial viability:

• A Rating from Demotech – This firm focuses specifically on regional and specialty insurers. Edison holds an A or “Exceptional” rating for financial stability from Demotech.

• A+ Rating from Better Business Bureau – Edison maintains top A+ rating from the BBB based on complaint handling, transparency and more.

• Reinsurance Support – Edison’s reinsurance arrangements with larger carriers also lend confidence in their capacity to pay claims.

So while an AM Best rating would be ideal, these alternative indicators help provide assurance for Edison Insurance.

Complaints and Reviews to Watch Out For

When evaluating any lesser-known insurance company like Edison, it’s also crucial to research policyholder feedback:

• Complaints Filed Against Edison – There are numerous complaints on record with Florida insurance regulators related to Edison’s claims handling, billing issues and more.

• Below Average Reviews – Edison currently has below-average reviews from policyholders on sites like ConsumerAffairs, marking a concerning trend.

• Areas of Concern – Specific complaints mention claim delays, claim denials and ongoing coverage disputes.

This pattern of policyholder complaints should raise red flags for consumers considering Edison Insurance. Even if their finances check out on paper, poor service is a risk.

How to Evaluate Insurers Without AM Best Ratings

For insurance companies that don’t have AM Best ratings, make sure to:

• Review any ratings from alternative firms like Demotech
• Check BBB grade and volume of complaints
• Research policyholder reviews and feedback
• Learn about reinsurance arrangements
• Ask about reserves, capital ratios and other financial metrics
• Look at management experience and company history

This provides a more complete picture of niche players like Edison Insurance that lack AM Best ratings. Independent agents can also give added insight into lesser-known regional insurers.

Key Factors Beyond AM Best Ratings

While financial strength is critical, also weigh these factors when selecting coverage:

• Risk Appetite – Willingness to cover unique exposures.

• Policy Offerings – Breadth of products and coverage enhancements available.

• Service Reputation – Responsiveness to policyholder questions and claims.

• Experience – Number of years in the insurance industry.

• Local Presence – Proximity of sales and service resources.

Finding the right balance requires looking at ratings, reviews, products, price and service. AM Best is one piece of the puzzle.

Is Edison Insurance a Good Choice?

Given the lack of AM Best rating, limited history, complaint activity, and poor reviews, we would classify Edison as high-risk for insurance purposes currently.

While Edison may offer affordable premiums, the concerns around service and financial stability outweigh the potential cost savings. There are more established carriers to choose from in Florida.

We recommend continuing your search for options with proven financial strength, satisfied customers and quality service. Don’t let price alone drive this important decision.

The Bottom Line